A strategic alliance
Ford and China’s Geely Auto announced an agreement to jointly manufacture low- or zero-emission vehicles at a Ford plant in Valencia, Spain. The alliance seeks to reactivate Ford’s offer in Europe and compete with Chinese manufacturers that dominate the global market.
If it receives regulatory approval, Ford will own two-thirds of the joint venture; Geely, also owner of Volvo and Polestar, will control the rest.
Planned vehicles
Both companies plan five models. Ford will continue production of the Kuga plug-in hybrid and will launch a new Bronco in 2028. Geely will build two electric trucks at the plant, the first also in 2028. In addition, they will develop a “multi-energy” crossover that will hit the market that same year.
“The joint venture addresses the new realities of the European market—intense global competition, relentless cost pressure and increasingly strict regulations,” said a statement from the two companies.
Context of the decision
Ford has lost ground in Europe: from selling more than a million vehicles a decade ago, last year it sold less than half a million. The Valencia plant has capacity for 500,000 cars annually, but its production fell below 100,000 in 2025.
The alliance reduces financial pressure by sharing costs. Ford and Geely already have history: Ford sold Volvo Cars to the Chinese company in 2010.
“This deal provides a roadmap for how traditional manufacturers can survive and thrive in Europe,” said Jessica Caldwell, director of analytics at Edmunds. “Ford gains scale and cost efficiencies; Geely a shortcut to avoid EU tariffs.”
Challenges in the US
Meanwhile, in the United States, Donald Trump’s administration has weakened fuel efficiency standards and eliminated tax credits for electric vehicles. This creates uncertainty, but also drives manufacturers like Ford to look for opportunities in Europe.
“Like GM, Ford has been reducing its dependence on Europe. Now, with Geely, it can have new products designed for that market without assuming the entire development cost,” said Sam Fiorani, vice president of AutoForecast Solutions.
Chinese automakers, with government subsidies, have gained ground in Asia, Latin America and parts of Europe. The alliance with Geely not only expands China’s presence in local European production, but also helps keep Ford workers on the assembly line.




